EU Taxonomy in Limbo - Reporting Alignment of Article 8 and 9 Funds in 2022

For observers of the EU’s Sustainable Finance Strategy, 2022 kicked off with a crack and a bang as the European Commission went ahead with plans to include natural gas and nuclear-related activities as potentially sustainable under their ‘Green Taxonomy’. However, in midst of this furor, seemingly less attention has been paid to other components of the regulation that have quietly taken effect from the 1st of January 2022, presenting their own set of challenges.

governance in brief

Governance in Brief – March 3, 2022

McDonald’s faces proxy fight over pig treatment Activist investor Carl Icahn has nominated two candidates to the McDonald’s board, in a proxy fight over the firm’s treatment of pigs. Icahn, who owns 200 shares of McDonald’s stock, also requests that the fast-food giant source its meat from crate-free pork suppliers within a specific timeframe.

What is ESG and Why Is it Important for Risk Management?

What is ESG and Why It's Important for Risk Management

This blog post explains what is ESG, including basic ESG concepts, ESG scores and ratings, and why companies of all sizes need ESG risk management.

Shanghai skyline | China's Burgeoning Green Bond Market

China’s Burgeoning Green Bond Market: Developments, Characteristics, and Outlook

Insights on China's growing green bond market, including recent developments, key characteristics, and expectations for the world's second largest market.

Sustainalytics Podcast

What’s Happening in Sustainable Finance: Evidence of a Social Bond Premium, the Elements of a Just Transition and More

Get an update on recent deals and transactions in the global sustainable finance market, notable reports, and thoughtful insights from Sustainalytics’ sustainable finance experts.

governance in brief

Governance in Brief – February 24, 2022

SEC continues work on climate risk disclosure rules U.S. SEC Chair Gary Gensler has responded to criticism from senators over the delayed publication of the agency’s mandatory climate risk disclosure draft, noting that “it’s essential [that the SEC] get this right”. In a letter sent to Gensler, Senator Elizabeth Warren called for the “release of the strongest requirements possible” amid reports that the delay stems from disagreements between SEC Commissioners over whether Scope 3 emissions should be included among disclosure requirements.

Download The Sustainable Supply Chain Checklist: 5 Essential ESG Action Areas for 2022

The Sustainable Supply Chain Checklist: Essential ESG Action Items for 2022

Businesses are looking closer look at their supply chains than ever. View our checklist to learn essential ESG action steps to put your company’s supply chain on the path to sustainability.

oil and gas ESG risk

The ESG Risks of National Oil Companies Taking Over Fossil Fuel Production from International Oil Majors

As growing pressure to cut GHG emissions is causing Western oil majors to sell their high-carbon assets, it is expected that National Oil Companies (NOCs) will pick up some of the production. For investors holding an interest in or considering investing in NOCs or sovereign debt, it is worth assessing how fossil fuel production shifts will impact their portfolio’s alignment with climate ambitions and ESG values.

eBook | Getting Started With ESG | Sustainalytics

Getting Started With ESG: What Every Company Needs to Know

This ebook outlines the key steps for every company starting out with ESG, including getting buy-in, understanding your situation, developing a strategy, and more.

governance in brief

Governance in Brief – February 17, 2022

NVIDIA’s planned acquisition of Arm collapses NVIDIA and Softbank have called off the planned merger between NVIDIA and Softbank’s semiconductor segment Arm Ltd., which had been expected to take place later this year, citing “significant regulatory challenges” from several national and regional agencies.

Checklist: 5 Steps to Jumpstart Your Journey to a Nature-Positive Business

Learn the five key steps companies can take to better address their biodiversity impacts and start building a more nature-positive business.

null

How a Telecommunications and Software Company Laid the Foundation for Its ESG Performance

By understanding its ESG position among industry peers, Windstream set a benchmark for improving its ESG targets and communicating sustainability accomplishments to key stakeholders.

What Happens When Companies are Receptive to Investor Feedback on ESG?

When companies are receptive to investor feedback, there are clear real-world impacts and positive changes. Such engagement outcomes vary and are directly tied to the company and its company-specific exposure to material ESG issues.

governance in brief

Governance in Brief – February 10, 2022

FTC seeks to block Lockheed’s purchase of Aerojet Citing antitrust concerns, the U.S. Federal Trade Commission (“FTC”) has filed a suit seeking a preliminary injunction to block Lockheed Martin's USD 4.4 billion acquisition of rocket engine maker Aerojet Rocketdyne Holdings.

Financing the Future: Conversations on Sustainable Finance

Financing the Future: An Interview on How Banks are Embarking on Their ESG Journeys

Financing the Future: Conversations in Sustainable Finance is a Q&A series where we sit down with featured ESG experts from Sustainalytics, sharing their insights on how businesses are using finance to meet the challenges of our transition to a sustainable future.

Maximum Impact: How Bond Impact Reporting Can Improve Corporate Decision Making

When companies measure and report the environmental and social impacts of their operations, they can demonstrate to investors large and small that their green and social bonds are reliable investments for maximum impact. Then investors can optimize their portfolios for impact as they do for risk and reward and companies can optimize their efforts to improve.

Measuring What Matters: Initiatives for Climate Related Impact and Disclosure - hot orange in the sky

Measuring What Matters: Initiatives for Banks' Climate-Related Impact and Disclosure

To help financial institutions examining the climate impact of their portfolios, we’ve compiled a list of the initiatives and organizations offering guidance on the collection, measurement, and disclosure of climate-related financial data.

Download our infographic: Six Major Supply Chain Risk Factors and Their Impact on You

Infographic | Six Major Supply Chain Risk Factors for 2022 and Their Impact on You

This infographic shows the impacts of strong or weak supply chain practices and breaks down six crucial factors for identifying strong and weak sustainability traits in any organization.

governance in brief

Governance in Brief – February 3, 2022

European Banking Authority releases ESG disclosure standards The European Banking Authority has published its “Implementing Technical Standards” (“ITS”), governing European banks’ Pillar 3 ESG risk disclosure. The framework, which is rooted in the EU Taxonomy and previous recommendations from the European Commission and the Financial Stability Board Task Force, is meant to provide a comprehensive basis for comparing banks’ incorporation of sustainability factors into their risk management, strategy, and governance. The framework will require European banks to disclose climate risks and mitigating actions, including information on two new ratios – the “green asset” ratio (“GAR”) and the “banking book taxonomy alignment” ratio (“BATR”). Other required metrics include exposure to fossil fuel and other carbon- and GHG-emitting activities, as well as alignment with 2050 net zero goals. Mandatory publication of climate risk exposure and corresponding mitigation measures will start in 2023, while disclosure of GAR and BATR will be required as of 2024.

Podcast microphone on blue-green background

What’s Happening in Sustainable Finance: Reflecting on COP26 Pledges, Sustainable Finance for Gender Equality, and More

In this episode we highlight some of the outcomes from COP26, a new report on using sustainable debt to further gender equality, as well as recent deals, developments, and research in the global sustainable finance market.